In the digital age, the investment universe has become a very complex place with a huge trove of information and data available as well as access to direct online investment product offerings. And whilst this increased choice is good it can also open the gates to bad actors who mislead clients through clever marketing ploys to entice them into making bad investment decisions.
There are some basic fundamental investment truths that always apply no matter what the underlying investment may be. Every investor should be aware of these to make the right investment choices and indeed learn how to spot potential scams.
Billions of EUROS are being burned worldwide each year through financial scams, unprofessional advice and uneducated financial advice delivered by “good friends”.
First of all, Investors need to be clear about their financial goals and these must be realistic and achievable. To start they need to understand their own attitude to risk, their capacity to take on investment risk and how this risk should be “managed”.
But they also need to understand that risk management has its limits and the higher the return expectation the more willingness there must be to take on risk.
Investors must become more educated and be aware of basics like the relationship between risk and return, effective investment diversification and how it is achieved, volatility, asset correlation, traditional and alternative assets, the value of so called “guaranteed” investments, sustainable investments (ESG) just to name a few topics !
To be clear, professional investment advice is more important than ever, but clients need to acquire a fundamental understanding of basic investment principles to understand what they are being advised on.
Inspired Invest Consulting will hold regular financial coaching seminars to enable present and future investors to make the right investment choices for them and become more financially “savvy” when it comes to investment decisions.
After all your financial health depends on it!
For more information on our “How to become a savvy investor” webinar events please go to our Event section.
Inspired Invest Consultancy also authors regular educational articles on the topic of investments. Please click the button below to read up on our published investment articles.